P.F. Chang’s Reports Fourth Quarter and Full Year 2009 Results

The Company’s fourth quarter and fiscal year 2009 results were comprised of 14 and 53 weeks, respectively, compared to 13 and 52 weeks in the fourth quarter and fiscal year 2008.

Highlights for the fourth quarter of 2009 compared to prior year include:

• Consolidated revenues increased 10.8% to $326.7 million

• Comparable store sales declined 5.2% at the Bistro and increased 3.0% at Pei Wei

• Restaurant operating income margin increased 100 basis points to 12.7%

• Income from continuing operations increased 60.0% to $12.0 million

• Net income increased 121.0%(1) to $12.0 million

• Income from continuing operations per diluted share increased 67.7% to $0.52

• Net income per diluted share increased 126.1%(1) to $0.52

Highlights for fiscal 2009 compared to prior year include:

• Consolidated revenues increased 2.5% to $1,228.2 million

• Comparable store sales declined 6.7% at the Bistro and increased 0.1% at Pei Wei

• Restaurant operating income margin increased 80 basis points to 12.2%

• Income from continuing operations increased 24.7% to $43.7 million

• Net income increased 57.5%(1) to $43.2 million

• Income from continuing operations per diluted share increased 29.0% to $1.87

• Net income per diluted share increased 62.3%(1) to $1.85

(1) Prior year net income includes a loss from discontinued operations related to the fiscal 2008 closure of 10 underperforming Pei Wei restaurants, comprised primarily of $2.7 million in pretax lease termination and severance charges recognized in the fourth quarter of 2008 and $10.2 million in pretax asset impairment, lease termination and severance charges recognized during fiscal 2008.

Fourth quarter comparable store sales

For the 14 weeks ended January 3, 2010, comparable store sales decreased 5.2% at the Bistro due to a reduction in overall guest traffic combined with a slight decline in average check, reflecting the net impact of menu mix changes. Comparable store sales at the Bistro decreased 6.2%, 5.2%, and 4.3% in October, November and December, respectively.

For the 14 weeks ended January 3, 2010, comparable store sales increased 3.0% at Pei Wei due to an increase in overall guest traffic partially offset by a slight decline in average check, reflecting the net impact of menu mix changes. Comparable store sales at Pei Wei increased 3.0%, 3.7%, and 2.4% in October, November and December, respectively.

Comparable store sales for the fourth quarter of fiscal 2009 reflect results from the 14 week operating period in the current year compared to the same 14 week operating period in the prior year. Comparable store sales for December 2009 reflect results from the 5 week operating period in the current year compared to the same 5 week operating period in the prior year.

2010 Expectations

The Company anticipates that fiscal 2010 consolidated revenues will be flat compared to fiscal 2009. This is based on expectations of slightly lower average weekly sales at both concepts during fiscal 2010 and the impact of a 52 week fiscal year in fiscal 2010 (versus 53 weeks in fiscal 2009), offset by the benefit of a full year of revenues for restaurants that opened during fiscal 2009 combined with revenues from six to ten anticipated new restaurant openings during fiscal 2010.

Despite the impact of slightly lower anticipated average weekly sales, the Company expects restaurant operating margins for fiscal 2010 to be consistent with fiscal 2009, primarily due to expectations of favorable cost of sales offsetting the anticipated impact of deleverage of certain fixed operating costs and higher planned marketing spend.

The Company expects to open three to five new Bistro restaurants and three to five new Pei Wei restaurants during fiscal 2010. As a result, the Company anticipates slightly lower preopening expenses for fiscal 2010.

The Company also plans to fully repay its outstanding credit line borrowings of $40 million and repurchase approximately $40 million in common shares under its current $100 million share repurchase authorization during fiscal 2010.

Overall, the Company expects consolidated diluted earnings per share to approximate $2.00 for fiscal 2010.

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